Article

From the horse’s mouth

US Federal Communications Commission

My Comments

The recent US Supreme Court decision against Aereo has shown up how facilities-based multichannel TV providers i.e. cable and satellite TV providers have the upper hand with negotiating access to content offered by the Hollywood studios and sports leagues.

But the FCC are considering allowing “over-the-top” Internet TV providers access to this same content on a par with the likes of Comcast and DirecTV. This is also in response to the fact that many American TV viewers are ending up with cable or satellite TV packages full of content they don’t want i.e. “57 channels and nothing on”.

The issue with the current situation is that Internet-based “over-the-top” TV providers aren’t placed on an equal footing to the big cable-TV providers. This is similar to how the US Congress passed laws requiring satellite TV providers like DirecTV and DISH to have access to the channels on an equal footing to cable-TV providers and this opened the doors to competition.

The opportunities provided by the Internet-based “over-the-top” services are many including the ability to provide TV content packages that are pitched at niche markets in a cost-effective manner. This includes providers that could focus on foreign-language content, wholesome family-friendly programming, and content pitched at expatriates. As well, it opens up the concept of increased carriage-service competition which can increase viewer choice and, hopefully, access to what the viewer really wants.

There is also the concept of taking a “technology-neutral” approach which also allows pay-TV companies and content providers to use a choice of technology to distribute the TV content to the end-user. This means that the likes of HBO, CBS, Comcast and co to implement Internet-based approaches thus increasing reach to a wider market. There is also the hope that this approach will heat up the demand for next-generation broadband through the US and increase the average bandwidth that Americans can enjoy.

For this to work, the FCC need to pass these rules without being sabotaged by Big Money. which is a problem that still dogs American politics.